When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (SPY) - BUY
BUY the S&P 500 (SPY) June 2021 $375-$385 in-the-money vertical bull call spread at $8.70 or best
Opening Trade
5-13-2021
expiration date: June 18, 2021
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If you don’t do options, stand aside. This is a short-term options expiration play only.
With the Volatility Index up here at a nosebleed $29, picking winning trade alerts is like shooting fish in a barrel. I am willing to bet that this correction will not extend more than 10% from the recent top.
I am therefore buying the S&P 500 (SPY) June 2021 $375-$385 in-the-money vertical bull call spread at $8.70 or best.
Don’t pay more than $9.00 or you’ll be chasing.
I’ll wax poetical later on. Right now, I want to get this alert out fast.
Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
This is a bet that the S&P 500 (SPY) will not trade below $385 by the June 18 option expiration day in 26 trading days.
Here are the specific trades you need to execute this position:
Buy 12 June 2021 (SPY) $375 calls at………….………$38.00
Sell short 12 June 2021 (SPY) $385 calls at………….$29.30
Net Cost:………………………….….....……..………….….....$8.70
Potential Profit: $10.00 - $8.70 = $1.30
(12 X 100 X $1.30) = $1,560 or 14.94% in 26 trading days.
If you are uncertain about how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.